Overview
For many mortgage brokers, the idea of selling their business feels far away. But if you plan to exit in the next two to five years, the time to prepare is now.
The brokers who achieve the strongest sale outcomes are the ones who treat their exit like any other long-term strategy: plan early, know the numbers, and build something worth buying.
Here’s what to focus on:
1. Know what you are selling
Are you selling a job, a trail book, a mortgage brokerage or an enterprise? There’s a big difference.
A buyer will want to know whether they’re stepping in as the lead broker or acquiring a business that runs independently of the founder. If the business relies heavily on you, the value will likely be limited to a multiple of your trail book.
Ask yourself:
- Do brokers in your team own their own trail or part of it?
- Would a buyer be purchasing a self-sufficient business or a job?
- Have you structured the business to maximise enterprise value rather than just trail income?
If not, there is still time to make changes. Start shifting from a broker-led model to a business-led one.
2. Build robust systems
Buyers pay for certainty. If your business has clear, reliable systems that make writing and retaining loans easy, it becomes far more valuable.
Strong CRMs, consistent data recording, and repeatable client retention processes all add measurable value. When a buyer can step in, plug into your systems, and start generating income from day one, they’re not just buying your trail book, they’re buying a functioning mortgage business.
3. Know your numbers
Every buyer will ask for your data, and the most prepared brokers know these figures.
Key metrics include:
- Run-off rate
- Clawback rate
- Arrears rate
- Average age of loans
- Average loan size (existing and new)
These numbers show the true health of your brokerage. Identify your strengths and double down on them. Find weaknesses and fix them. This is not only about looking good for sale; it’s about improving profitability and sustainability now.
🎧 Want to go deeper? Listen to our latest podcast: How to Navigate Trail Book Buying & Selling in Today’s Market. In this conversation, I share practical insights on market trends, negotiation strategies, and how to maximise your book’s long-term value.
4. Understand where you are in the business lifecycle
Every broking business goes through predictable stages. Knowing where you sit helps you choose the right time to sell.
- If upfronts exceed trail, your book is still growing.
- If upfronts equal trail, you’ve reached maturity.
- If trail exceeds upfronts, your trail book may be shrinking, and now could be the right time to sell.
Timing your exit when the business is still growing but mature will maximise your sale price.
5. Identify and strengthen your lead sources
A high-performing brokerage has reliable lead channels. Buyers want to know where your clients come from and how sustainable those sources are.
If you have strong referral partners, an effective digital presence, or consistent online reviews, double down on them. Just make sure your marketing and lead generation systems are transferable. Buyers pay a premium for a business that keeps generating new clients without the founder’s direct involvement.
6. Get clear on your goals
What do you really want from the sale? This clarity shapes everything else.
Write it down. Do you want to:
- Retire completely and move on?
- Stay involved in a consulting or mentoring role?
- Ensure your staff and clients are looked after
- Leave a lasting legacy in your business?
Your personal goals will influence the handover, the deal structure, and the type of buyer you attract. Having this clarity early helps you stay rational when negotiations start.
The bottom line
A successful exit doesn’t happen by chance. It comes from structure, systems, timing, and clear intent.
The best outcomes go to brokers who prepare years in advance, those who build a business, not just a trail book.
If you’re thinking about selling your mortgage brokerage in the next few years, start preparing now.
TrailBlazer Finance helps brokers with funding, valuations, advisory, and buy/sell services. For a confidential discussion about your next move, get in touch with TrailBlazer Finance.
